So you’re the proud owner of a buy to let property. Now you need to decide whether you’re going to manage the property yourself or put it in the capable hands of a letting agent.
As agents charge between 10-17% of the monthly rent, along with various administration charges, you may well consider going the DIY route. After all, those costs can wipe off any profit you might be hoping to make each month.
But is this the best choice, or would you be better putting your trust in the experts?
Firstly, you should be aware that all letting agents are not made equal. The same as in any business, there are the bad, the good and the outstanding. So the golden rule here is to shop around! Ask questions of your potential letting agent, who should be happy to answer them in easy to understand terms. Any agent worth their salt will be proud to tell you why they are worth their fee and what their service will mean to you personally.
One of the biggest reasons to use a letting agent is that they understand all the legalities involved in letting out a property. Get something wrong in this respect and you could land yourself in a whole heap of trouble, not to mention out of pocket.
Then there’s the fact that a letting agents ‘raison d’etre’ is just that – letting properties. They will have a website, shop front and (hopefully) a stream of clients actively looking for a place to rent beating a path to their door. They also know the market, so they can advise you of a realistic price that you can expect to get per month for your property.
There is also another primary reason for using an agent – and that is down to sheer time. Do you have the time to sort out your advertising, show around prospective tenants, carry out background checks, deal with repairs and maintenance, cope with missed payments and a whole host of other duties which go with being a DIY landlord?
Another fact to think about is how much money you will lose if your property remains empty. If you fail to find a tenant or your current one leaves, a few weeks spent looking for a new one could outweigh the commission you pay an agent. If you are with an agent, with any luck they’ll have a bunch of new prospective tenants lined up to view before the old one moves out.
You should also consider where your property is. If the property is local to where you live, then looking after it yourself might be a viable option. But if it’s in another area of the country, who is going to be on hand to deal with emergencies and the like?
Of course, using a letting agent is a matter of personal choice and circumstances, but very often people make the mistake of thinking they can do it themselves. However, after a few months of dilemmas and, no doubt, loss of income, they end up turning to the experts for help. If this had been done in the first place then a lot of stress and money could have been saved. property management, luxury apartment building, Nottingham letting agency, property management Nottingham.